EAST WEST BANCORP INC

For the period ended Jun 30, 2026. Filed Aug 7, 2026.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2026 · Filed Aug 7, 2026

EWBC$130.97+1.7%Stored close · as of Nov 9, 2026

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Contents

Net Interest Income

The Company’s primary source of revenue is net interest income, which is the interest income earned on interest-earning assets less interest expense paid on interest-bearing liabilities. Net interest margin is the ratio of net interest income to average interest-earning assets. Net interest income and net interest margin are impacted by several factors, including changes in average balances and the composition of interest-earning assets and funding sources, market interest rate fluctuations and the slope of the yield curve, repricing characteristics and maturity of interest-earning assets and interest-bearing liabilities, the volume of noninterest-bearing sources of funds and asset quality.

Net interest income and net interest margin for the second quarter and first half of 2026 increased year-over-year. These year-over-year increases primarily reflected lower interest-bearing deposit funding costs and increases in loans and AFS debt securities’ average balances, partially offset by lower yields on loans, interest-bearing cash and deposits with banks, and AFS debt securities.

Average interest-earning assets were $80.1 billion for the second quarter of 2026, an increase of $6.2 billion or 8% from the second quarter of 2025. For the first half of 2026, average interest-earning assets were $79.0 billion, an increase of $5.7 billion or 8% from the first half of 2025. The year-over-year increases in average interest-earning assets primarily reflected loan growth and increases in AFS debt securities.

The yield on average interest-earning assets for the second quarter of 2026 was 5.41%, a decrease of 34 bps from the second quarter of 2025. The yield on average interest-earning assets for the first half of 2026 was 5.45%, a decrease of 30 bps from the first half of 2025. These year-over-year decreases for both periods primarily reflected the impact of lower benchmark interest rates on the loan portfolio.

Average loan yields of 6.02% and 6.06% for the second quarter and first half of 2026, respectively, decreased 38 bps and 33 bps, respectively, compared with the prior year periods. The year-over-year decreases in the average loan yield for both periods primarily reflected the loan portfolio’s sensitivity to lower benchmark interest rates. Approximately 59% and 58% of loans held-for-investment were variable-rate as of June 30, 2026 and 2025, respectively.

Deposits are an important source of funding for the Company. Average deposits were $68.7 billion and $68.1 billion for the second quarter and first half of 2026, respectively, which both increased $5.0 billion or 8% from the prior year comparative periods. The year-over-year increases for both periods were primarily driven by growth in demand, time and money market deposits.

Average noninterest-bearing deposits were $17.4 billion for the second quarter of 2026, a $2.2 billion or 15% increase from the second quarter of 2025. For the first half of 2026, average noninterest-bearing deposits were $17.1 billion, a $2.0 billion or 13% increase from the first half of 2025. The proportion of average noninterest-bearing deposits remained relatively stable year over year at 25% for both the second quarter and first half of 2026, compared with 24% in the same prior year periods.

The average cost of deposits of 2.10% for the second quarter and 2.12% for the first half of 2026 decreased 42 bps and 41 bps, respectively, compared with the prior year periods. The average cost of interest-bearing deposits decreased 50 bps from the prior year periods to 2.81% for the second quarter of 2026 and 2.83% for the first half of 2026. These year-over-year decreases primarily reflected the impacts of lower benchmark interest rates and the Company’s efforts to reduce deposit costs.

The average cost of funds calculation includes deposits, Federal Home Loan Bank (“FHLB”) advances, securities sold under repurchase agreements (“repurchase agreements”), long-term debt, and short-term borrowings. The average cost of funds of 2.19% for the second quarter and 2.20% for the first half of 2026, both decreased 44 bps from the prior year periods. The year-over-year decreases were mainly driven by the decrease in the cost of deposits as discussed above.

The Company utilizes various tools to manage interest rate risk. Refer to the Interest Rate Risk Management section of Item 2. MD&A — Risk Management — Market Risk Managementin this Form 10-Q.

The following table presents the interest spread, net interest margin, average balances, interest income and expense, and the average yield/rate by asset and liability component for the second quarters of 2026 and 2025:

	Three Months Ended June 30,
2026 · 2025
($ in thousands) · Average Balance · Interest · Average Yield/Rate (1) · Average Balance · Interest · Average Yield/Rate (1)
ASSETS
Interest-earning assets:
Interest-bearing cash and deposits with banks	$3,985,838		$31,216			3.14%		$3,699,036			$34,935		3.79%
Securities purchased under resale agreements (“resale agreements”)	425,000		1,624			1.53%		425,000			1,624		1.53%
Debt securities:
AFS (2)(3)	14,441,915		158,285			4.40%		12,435,531			141,496		4.56%
Held-to-maturity (“HTM”) (2)	2,849,553		12,044			1.70%		2,896,410			12,292		1.70%
Total debt securities (2)	17,291,468		170,329			3.95%		15,331,941			153,788		4.02%
Loans:
Commercial and industrial (“C&I”) (2)	19,452,052		304,621			6.28%		17,363,095			303,791		7.02%
Commercial real estate (“CRE”) (2)	21,550,542		320,535			5.97%		20,535,145			319,666		6.24%
Residential mortgage	17,173,833		248,541			5.80%		16,336,054			241,666		5.93%
Other consumer	53,075		792			5.98%		47,138			572		4.86%
Total loans (2)(4)(5)	58,229,502		874,489			6.02%		54,281,432			865,695		6.40%
Restricted equity securities	157,737		3,165			8.05%		165,716			2,957		7.16%
Total interest-earning assets	$80,089,545		$1,080,823			5.41%		$73,903,125			$1,058,999		5.75%
Noninterest-earning assets:
Cash and due from banks	311,337						350,343
Allowance for loan and lease losses (“ALLL”)	(854,564)						(745,121)
Other assets	3,604,651						3,353,681
Total assets	$83,150,969						$76,862,028
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Checking deposits	$7,530,547		$37,692			2.01%		$7,597,103			$47,013		2.48%
Money market deposits	16,545,079		108,628			2.63%		15,325,928			124,282		3.25%
Savings deposits	1,905,782		4,511			0.95%		1,745,220			3,700		0.85%
Time deposits	25,353,592		208,591			3.30%		23,894,775			225,593		3.79%
Total interest-bearing deposits	51,335,000		359,422			2.81%		48,563,026			400,588		3.31%
Short-term borrowings and federal funds purchased	364		5			5.08%		659			1		0.66%
FHLB advances	3,041,759		29,455			3.88%		3,500,003			39,313		4.51%
Repurchase agreements	707,880		6,680			3.79%		119,061			1,352		4.55%
Long-term debt and finance lease liabilities	35,480		610			6.89%		35,811			671		7.52%
Total interest-bearing liabilities	$55,120,483		$396,172			2.88%		$52,218,560			$441,925		3.39%
Noninterest-bearing liabilities and stockholders’ equity:
Demand deposits	17,362,645						15,114,806
Accrued expenses and other liabilities	1,553,445						1,458,680
Stockholders’ equity	9,114,396						8,069,982
Total liabilities and stockholders’ equity	$83,150,969						$76,862,028
Total deposits	$68,697,645		$359,422			2.10%		$63,677,832			$400,588		2.52%
Interest rate spread				2.53%						2.36%
Net interest income and net interest margin		$684,651			3.43%				$617,074			3.35%

(1)Annualized.

(2)Yields on tax-exempt securities and loans are not presented on a tax-equivalent basis.

(3)Includes the amortization of net premiums on AFS debt securities of $61 thousand and $10 million for the second quarters of 2026 and 2025, respectively.

(4)Average balances include nonperforming loans and loans held-for-sale.

(5)Loans include the accretion of net deferred loan fees and amortization of net premiums, which totaled $8 million and $13 million for the second quarters of 2026 and 2025, respectively.

	Six Months Ended June 30,
2026 · 2025
($ in thousands) · Average Balance · Interest · Average Yield/Rate (1) · Average Balance · Interest · Average Yield/Rate (1)
ASSETS
Interest-earning assets:
Interest-bearing cash and deposits with banks	$3,926,059		$61,067			3.14%		$3,906,499			$74,072		3.82%
Resale agreements	425,000		3,249			1.54%		425,000			3,234		1.53%
Debt securities:
AFS (2)(3)	14,027,873		306,449			4.41%		12,102,837			277,015		4.62%
HTM (2)	2,855,444		24,058			1.70%		2,902,373			24,557		1.71%
Total debt securities (2)	16,883,317		330,507			3.95%		15,005,210			301,572		4.05%
Loans:
C&I (2)	19,104,391		601,936			6.35%		17,115,622			597,205		7.04%
CRE (2)	21,436,986		636,458			5.99%		20,454,528			631,052		6.22%
Residential mortgage	17,051,635		493,425			5.84%		16,193,678			476,557		5.93%
Other consumer	52,309		1,548			5.97%		48,351			1,293		5.39%
Total loans (2)(4)(5)	57,645,321		1,733,367			6.06%		53,812,179			1,706,107		6.39%
Restricted equity securities	154,478		8,143			10.63%		165,540			5,816		7.08%
Total interest-earning assets	$79,034,175		$2,136,333			5.45%		$73,314,428			$2,090,801		5.75%
Noninterest-earning assets:
Cash and due from banks	380,395						347,797
Allowance for loan, lease, and securities’ losses	(845,745)						(730,768)
Other assets	3,552,509						3,315,450
Total assets	$82,121,334						$76,246,907
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Checking deposits	$7,591,242		$77,137			2.05%		$7,672,963			$94,924		2.49%
Money market deposits	16,375,246		213,506			2.63%		15,081,131			240,300		3.21%
Savings deposits	1,804,410		7,521			0.84%		1,749,062			7,147		0.82%
Time deposits	25,233,524		416,670			3.33%		23,547,978			450,198		3.86%
Total interest-bearing deposits	51,004,422		714,834			2.83%		48,051,134			792,569		3.33%
Short-term borrowings and federal funds purchased	465		9			3.73%		544			7		2.56%
FHLB advances	2,810,775		54,459			3.91%		3,500,002			78,179		4.50%
Repurchase agreements	529,966		9,970			3.79%		63,183			1,429		4.56%
Long-term debt and finance lease liabilities	35,523		1,217			6.91%		35,864			1,342		7.55%
Total interest-bearing liabilities	$54,381,151		$780,489			2.89%		$51,650,727			$873,526		3.41%
Noninterest-bearing liabilities and stockholders’ equity:
Demand deposits	17,121,393						15,109,447
Accrued expenses and other liabilities	1,537,720						1,516,650
Stockholders’ equity	9,081,070						7,970,083
Total liabilities and stockholders’ equity	$82,121,334						$76,246,907
Total deposits	$68,125,815		$714,834			2.12%		$63,160,581			$792,569		2.53%
Interest rate spread				2.56%						2.34%
Net interest income and net interest margin		$1,355,844			3.46%				$1,217,275			3.35%

(1)Annualized.

(2)Yields on tax-exempt securities and loans are not presented on a tax-equivalent basis.

(3)Includes the amortization of net premiums of AFS debt securities of $1 million and $17 million for the first halves of 2026 and 2025, respectively.

(4)Average balances include nonperforming loans and loans held-for-sale.

(5)Loans include the accretion of net deferred loan fees and amortization of net premiums, which totaled $19 million and $26 million for the first halves of 2026 and 2025, respectively.

The following table summarizes the extent to which changes in (1) interest rates and (2) volume of average interest-earning assets and average interest-bearing liabilities affected the Company’s net interest income for the periods presented. The total change for each category of interest-earning assets and interest-bearing liabilities is segmented into changes attributable to variations in volume and yield/rate. Changes that are not solely due to either volume or yield/rate are allocated proportionally based on the absolute value of the change related to average volume and average yield/rate.

Three Months Ended June 30, · Six Months Ended June 30,
2026 vs. 2025 · 2026 vs. 2025
	Changes Due to			Changes Due to
($ in thousands)	Total Change	Volume	Yield/Rate	Total Change	Volume	Yield/Rate
Interest-earning assets:
Interest-bearing cash and deposits with banks	$(3,719)	$2,564	$(6,283)	$(13,005)	$369	$(13,374)
Resale agreements	—	—	—	15	—	15
Debt securities:
AFS	16,789	22,146	(5,357)	29,434	42,501	(13,067)
HTM	(248)	(198)	(50)	(499)	(396)	(103)
Total debt securities	16,541	21,948	(5,407)	28,935	42,105	(13,170)
Loans:
C&I	830	34,500	(33,670)	4,731	65,724	(60,993)
CRE	869	15,436	(14,567)	5,406	29,670	(24,264)
Residential mortgage	6,875	12,204	(5,329)	16,868	24,928	(8,060)
Other consumer	220	78	142	255	111	144
Total loans	8,794	62,218	(53,424)	27,260	120,433	(93,173)
Restricted equity securities	208	(147)	355	2,327	(412)	2,739
Total interest and dividend income	$21,824	$86,583	$(64,759)	$45,532	$162,495	$(116,963)
Interest-bearing liabilities:
Checking deposits	$(9,321)	$(408)	$(8,913)	$(17,787)	$(1,001)	$(16,786)
Money market deposits	(15,654)	9,332	(24,986)	(26,794)	19,418	(46,212)
Savings deposits	811	358	453	374	229	145
Time deposits	(17,002)	13,203	(30,205)	(33,528)	30,712	(64,240)
Total interest-bearing deposits	(41,166)	22,485	(63,651)	(77,735)	49,358	(127,093)
Short-term borrowings and federal funds purchased	4	(1)	5	2	(1)	3
FHLB advances	(9,858)	(4,091)	(5,767)	(23,720)	(14,175)	(9,545)
Repurchase agreements	5,328	5,594	(266)	8,541	8,821	(280)
Long-term debt and finance lease liabilities	(61)	(6)	(55)	(125)	(13)	(112)
Total interest expense	$(45,753)	$23,981	$(69,734)	$(93,037)	$43,990	$(137,027)
Change in net interest income	$67,577	$62,602	$4,975	$138,569	$118,505	$20,064

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